Bank Nifty index is managing to hold above the psychological 48,000 mark. It is currently at 48,216, up 0.5 per cent for the day. The advance-decline ratio is at 8:3. This is positive.
Bank Nifty index outlook
As long as the Bank Nifty index stays above 48,000, the outlook will be positive. The index can rise to 48,500-48,600 during the day. The outlook will turn negative only if the index slips below 48,000, after which it could fall to 47,700.
Bank Nifty futures
The Bank Nifty April Futures (48,205) is up 0.45 per cent. On the charts, the contract has an immediate resistance at 48,280. A break above it can take the contract up to 48,600.
Supports are at 48,100 and 47,900. The outlook will turn negative if the contract declines below 47,900. In that case, the Bank Nifty April Futures contract can fall to 47,400 and even lower.
Trade strategy
Traders can go long on a break above 48,280. Keep the stop-loss at 48,240. Trail the stop-loss up to 48,330 as soon as the contract moves up to 48,380. Move the stop-loss further up to 48,390 when the contract touches 38,420. Exit the long positions at 48,480.
Supports: 48,100, 47,900
Resistances: 48,280, 48,450